performance management - aon hewitt
TRANSCRIPT
Performance ManagementEffective performance management supports increased employee engagement and high organisational performance
Employers have been expanding their traditional and often disliked appraisal systems to pursue a broad an ambitious range of objectives. Desired outputs often include improved role clarity, a link between personal and organisational objectives, relative rating and ranking, performance-related reward, personal development, talent management and exiting poor performers.
Yet many seem to be struggling to deliver on this agenda. The most fundamental issue appears to lie in the very core of the process: poor or non-existent regular two-way, one-on-one manager / employee discussions. And without this the other dimensions of the process are doomed to fail.
Other criticisms of the process we regularly hear include:
Prescriptive, jargon-filled and overly-detailed paperwork and process
Poor manager and employee understanding of the purpose and goals of the process
Domination by rating and pay agendas, driving out feedback and development planning
Lack of follow-up and practical action between formal reviews; and
Perhaps most commonly of all, line managers lacking the required competence and commitment to the process.
The Aon Hewitt approach At Aon Hewitt we believe that successful Performance Management is not about process or systems, but effective conversations between managers and employees. We use a pragmatic, evidence-based and results-oriented approach that combines our experience with your internal knowledge.
Line Manager
Setting business direction and
examples
Building employee
engagement and
Appropriate process and tools
Developing high quality
conversations
Our work with clients enables:
The design of processes that are fit for purpose yet not bureaucratic
A two-way flow of communications with appropriate business metrics and commitment from the top, married with strong employee feedback, focus and development
The development of line managers, enabling them to have high quality conversations
We typically follow a three-step process when helping clients to create an effective performance management process:
1. Review the current practice. Key questions to address include: “What are you trying to achieve? What are your key priorities? Which aspects of the process are working and which aren't, and why? How engaged are the different stakeholders at the moment?
2. Build a straightforward and meaningful process that delivers on 'the basics'. Together with the client we set clear goals that are built around the various stakeholders’ interests. It is important to be realistic and cut back on complexity. Cascade a clear direction from the top, but focus on the quality of conversations and the overall employee experience through the annual cycle. It is critical to make the process as user-friendly as possible.
3. Build the capabilities to enable the conversations. Upskill, involve and engage line managers and employees with the process. Focus on the positive and employ a strengths-based approach to performance development. Ensure line managers receive appropriate guidance from HR, and that information systems are used to support, not drive the process. Monitor and take action to improve coverage and quality.
Case study – Technology Manufacturer
The client: Major technology manufacturer with 8,000 staff in the UK
The issue: The firm initially contacted us to assist them with a review of their bonus scheme to increase the linkage between individual performance and the level of bonus payout.
It quickly emerged that the company performance management processes in place were not robust enough to support the bonus scheme design they desired.
How Aon Hewitt added value: We worked with the client to completely redesign the performance management processes across the organisation, including communication to all staff. The new performance management process is now in use and the year-end performance review is linked to the company’s annual bonus scheme.
Initial responses have been positive and employees feel the benefit of allotted times to discuss their performance and development with their manager which they think ‘opens the door for dialogue’. The open and obvious sponsorship from senior leaders enhanced the acceptance of the new processes by employees.
Additionally, the business learned that, although they have a preference for highly structured processes, their confidence with the new system was such that they were happy to vary and adapt it to suit local needs, which in turn led to greater ownership of performance management across the entire organisation.
Aon Hewitt Contacts:
Duncan Brown+44 (0)207 086 9037
About Aon Hewitt Aon Hewitt is a global leader in people management consulting and outsourcing solutions. We design, implement, communicate, and administer a wide range of people management, retirement, investment management, health care, reward and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. www.aonhewitt.com
Jackie Waller+44 (0)172 788 8394
Leslie Moss+44 (0)207 086 9212
aon.co.uk